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Mongolia Reroutes Rail Link With New Coal Mine to Avoid China, Group Says
Mongolia will connect a new coal mine to the national rail network rather than build a direct link to China because authorities want to avoid over dependence on their southern neighbor, a New York-based research group said.
Mongolia will connect a new coal mine to the national rail network rather than build a direct link to China because authorities want to avoid over dependence on their southern neighbor, a New York-based research group said.
International advisers said a link from the Tavan Tolgoi coal deposit, 200 kilometers (124 miles) from the Chinese border, should go directly to its expected market, China, EurasiaNet.org said in an article posted on its website. Mongolia had been working with Deutsche Bahn AG to build a line using the Chinese rail gauge instead of the wider track used in Mongolia and Russia, the article said.
Mongolian leaders feared that a direct link to China would leave the country with too much economic dependence, the article said. Mongolia has 2.6 million people while China, the world’s second-biggest economy, has a population of more than 1.3 billion. China considered Mongolia part of its territory until the middle of the last century.
“Instead of shipping raw materials directly to one market, jobs and value-added production will be created in Mongolia,” the article cited Transportation Minister Battulga Khaltmaa as saying.
Mongolia also wants to sell some of the coal to Russia, Japan and South Korea, which would be made easier by a railroad linking in to Russia’s rail network, the article cited Dashbaljir Nemekhbayar, head of the Transportation Ministry’s Finance and Investment Department, as saying.
EurasiaNet.org focuses on providing analysis about political, economic and social developments in Central Asia, Russia, the Caucuses, Turkey and Southwest Asia. It is linked to the Open Society Institute, which is funded by billionaire hedge-fund manager George Soros.
International advisers said a link from the Tavan Tolgoi coal deposit, 200 kilometers (124 miles) from the Chinese border, should go directly to its expected market, China, EurasiaNet.org said in an article posted on its website. Mongolia had been working with Deutsche Bahn AG to build a line using the Chinese rail gauge instead of the wider track used in Mongolia and Russia, the article said.
Mongolian leaders feared that a direct link to China would leave the country with too much economic dependence, the article said. Mongolia has 2.6 million people while China, the world’s second-biggest economy, has a population of more than 1.3 billion. China considered Mongolia part of its territory until the middle of the last century.
“Instead of shipping raw materials directly to one market, jobs and value-added production will be created in Mongolia,” the article cited Transportation Minister Battulga Khaltmaa as saying.
Mongolia also wants to sell some of the coal to Russia, Japan and South Korea, which would be made easier by a railroad linking in to Russia’s rail network, the article cited Dashbaljir Nemekhbayar, head of the Transportation Ministry’s Finance and Investment Department, as saying.
EurasiaNet.org focuses on providing analysis about political, economic and social developments in Central Asia, Russia, the Caucuses, Turkey and Southwest Asia. It is linked to the Open Society Institute, which is funded by billionaire hedge-fund manager George Soros.
